Contractor & Owner/Builder Responsibilities

Florida’s Construction Lien Law (Chapter 713, Part One, Florida Statutes) requires the recording of a Notice of Commencement with the Clerk of the Courts for real property improvements greater than $2,500. This notice must be signed by the property owner. However, it does not apply to the repair or replacement of an existing heating or air conditioning system less than $7,500 in value.

Under Florida law, those who work on your property or provide materials, and are not paid, have a right to enforce their claim for payment against your property. This claim is known as a construction lien.

A Notice of Commencement protects you under the Construction Lien Law and helps you avoid the possibility of paying twice for improvements to real property, It must be signed by you, the owner contracting the improvement, and not your agent.

The Notice of Commencement must be completed and recorded within 90 days before starting the work. A copy is also to be posted on the job site.

• Section 489.127 Florida Statute provides that a contractor may not enter into an agreement with, or knowingly allow his certification to be used by, a person who is not certified or registered.
  
  
• Section 489.127 also provides that a contractor, except when working without compensation, may not obtain permits for construction work without first entering a contract to perform improvements. A violation of this provision is a misdemeanor of the first degree and a subsequent violation is a felony.
  
  
• Section 489.126 requires that a contractor who receives money totaling more than 10% of the contract price for work on residential property must apply for the necessary permits within 30 days after payment is made and must start work within 90 days after all permits are issued, unless the person who made payment agreed to a longer period in writing.
  
  
• Section 489.1425 requires the contractor to notify residential property owners of a recovery fund. Any agreement or contract must contain a written explanation of consumers rights under the Construction Industry Recovery Fund except when the value of labor and materials does not exceed $2,500 in value.
  
  
• Section 713.165 provides that the owner may request from the contractor a list of all subcontractors and suppliers. This request must be in writing and delivered by Registered or Certified mail. Within 10 days after receipt of the written request, the contractor must furnish the list. Failure to do so results in the forfeiture of the contractor’s right to assert a lien against the owner’s property.

• A large down payment is requested before work begins
• Many requests for money during early phases of construction
• A verbal contract only, as person is unwilling to put all terms in writing
• You are asked to make your check payable to an individual's name or asked to make payment in cash or to make the check payable to "cash"
• The contractor suggests doing the work without permits or asks you, as the homeowner, to obtain the permit.